RESTRICTED  
  
WT/COMTD/LDC/M/87  
 
27 May 2020  
(20-3833) Page: 1/11 
Sub-Committee on Least Developed Countries  
Eighty -Seventh Session    
 
NOTE ON THE MEETING OF 6 NOVEMBER 2019  
 Chairperson: Ambassador Monique T.G. Van Daalen (Netherlands)   
A. ADOPTION OF THE AGEN DA ................................ ................................ .....................  1 
B. MARKET ACCESS FOR LE AST DEVELOPED COUNTR IES ................................ .............  1 
(I) Annual Review of Developments in Preferential Rules of Origin for LDCs (G/RO/89): Report 
by the Secretariat  ................................ ................................ ................................ .................  1 
(II) Market Access for Products and Services of Export Interest to Least Developed Countries 
(WT/COMTD/LDC/W/67)  ................................ ................................ ................................ ....... 3 
C. ACCESSION OF LEAST D EVELOPED COUNTRIES  ................................ .......................  8 
(I) State of Play in the Accession Working Parties of Least Developed Countries: Oral Report by 
the Secretariat  ................................ ................................ ................................ .....................  8 
D. OTHER BUSINESS  ................................ ................................ ................................ ... 11 
 
 
A. ADOPTION OF THE AGENDA  
1. The Chairperson  said that the a genda for the Eighty -Seventh  Session of the Sub -Committee 
on Least Developed Countries (hereinafter the Sub -Committee) was contained  in document 
WTO/AIR/COMTD/LDC/14/REV.1.  
2. The agenda was adopted . 
B. MARKET ACCESS FOR LE AST DEVELOPED COUNTR IES 
(I) Annual Review of Developments in Preferential Rules of Origin for LDCs (G/RO/89): Report by 
the Secretariat  
3. The Chairperson  recalled that the Bali and Nairobi Ministerial Decisions on Preferential Rules 
of Origin for LDCs mandated the Secretariat to provide the Sub -Committ ee with a report on the 
outcome of the annual review undertaken by the Committee on Rules of Origin (CRO). She noted 
that document G/RO/89 contained the report of the CRO to the General Council on its annual review 
of 17 to 18 October 2019. She invited the  Secretariat (Market Access Division) to provide a report 
on the developments in preferential rules of origin for LDCs.  
4. The representative of the Secretariat  (Market Access Division) said that the CRO  had held two 
formal meetings in 2019 , focusing on three main topics in its work on preferential rules of origin for 
the LDCs , i.e. transparency, substantive aspects  of rules of origin, and preference utilization .  
5. Regarding transparency , he noted that 22 out of 24 preference -granting Members had 
submitted notifications of their preferential rules of origin  using the new notification template . He 
mentioned that t he Secretariat was in contact with  Armenia and Iceland , which were yet to submit 
their notifications. He said that progress on notification s of preferential  tariff and import statistics 
had been slower as notification gaps remained for a number of  preference -granting Members WT/COMTD/LDC/M/8 7 
 
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  (Armenia, China, Iceland, India, Kazakhstan, Kyrgyz Republic, Montenegro, New Zealand, 
Russian  Federation and Turkey) . 
6. Regarding substantive a spects  of rules  of origin , he said that the CRO had engaged in a n 
examination of change -of-tariff-classification  requirements , based on presentation s and papers 
prepared by the  LDC Group. This discussion had led to bilateral meetings between the LDC Group 
and a number of Members  (European Union , Japan and Switzerland ) to discuss product -specific rules 
of origin that the LDC Group deemed to be restrictive.  He said that the CRO had also engaged in a n 
analysis  of direct consignment requirements, which included presentations by some 
preference -granting Members , including the  Republic of Korea and the United States.  Finally , the 
CRO had also been provided an upd ate on the implementation of the self -certification system for 
registered exporters (Registered Exporter system, REX) of the European Union , Norway , Turkey and 
Switzerland.  
7. He went on to say that the work on preference utilization aimed at  identify ing rules of origin  
that might result in  low preference utilization . He noted that the Secretariat had prepared two notes 
examining the utilization of preferences for agricultural products a s well as  the linkages between 
preference utilization and direct consignment requirements.  He mentioned that the LDC Group had  
also presented analyses of the LDCs' preference utilization for the Preferential Trade Arrangement s 
(PTAs) of Switzerland and China . He co ncluded by saying that the CRO would continue its work in 
these areas . 
8. The representative of Chad, on behalf of the LDC Group, thanked  the Secretariat for the report 
on developments in preferential rules of origin for LDCs . He highlighted the importance of  the full 
implementation of the Nairobi Decision for improving LDCs' market access conditions and 
accelerat ing their integration into the global trading system .  
9. He welcomed the fact that almost all preference -granting Members had notified their rules of 
origin requirements. He pointed out that t ransparency on origin requirements, together with the 
submission of preferential import data, were vital to  assess the effectiveness of rules of or igin 
regulations and to respond to the challenges that LDC exporters face d with market access in 
developed and developing countries.  He expressed appreciation for the  Secretariat 's good use of the 
data submitted by preference -granting Members . He welcomed the creation of  the Rules of Origin 
Facilitator, an online platform that  enable d Members to consult and compare rules of origin 
requirements at the tariff line level.1 
10. He again expressed appreciation for the work done by Secretariat to enhance tra nsparency 
on rules of origin practices as well as on  the utilization of preferences by the  LDCs. He also  thank ed 
preference -granting M ember s for their co llaboration , in this context , as well as for their efforts  in 
further improving their rules of origin. He thanked those Members that had no objection to an 
in-depth analysis of their rules of origin  with a view  to draw recommendations on possible  
improvements for the benefit of LDCs . He concluded by highlighting that further progress on 
preferential rules of origin would help the LDCs improve their competitiveness and build their 
production capacity , fostering their  participation in international trade . 
11. The r epresentative of Cambodia  associate d his delegation with the statement made by Chad 
on behalf of the LDC Group. He expressed appreciation for the progress made by preference -granting 
Members in notifying their preferential rules of origin in line with  the new notification template. He 
welcome d the recent  notifications by the Kyrgyz Republic, Montenegro, Tajikistan, a s well as  Turkey, 
and look ed forward to receiving notifications from the remaining Members. He welcomed Iceland 's 
indicat ion in the CRO that it would submit its notification after the adopti on of new legislation.  
 
12. He encouraged preference -granting Members to notify preferential tariff  and trade data if they 
had not yet done  so. He also thank ed the European Union , Norway , Switzerland and Turkey for the 
updat e regarding the implementation of the REX system . He concluded by thank ing the Secretariat 
for its work with regard to the implementation of the Bali and Nairobi Decisions. He request ed the 
Secretariat to continue  the examin ation of utilization rates as well as rules of origin  requirements 
such as  change -of-tariff-classification, direct consignment and other origin criteri a.  
 
 
1 Available at: https://findrulesoforigin.org/   WT/COMTD/LDC/M/8 7 
 
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  13. The representative of the European Union  said that her delegation  attached much importance 
to having rules of  origin  in line with Ministerial Decisions  as well as to the preference utilization of 
LDCs. She commended the Secretariat  for its  work and  noted the usefulness of the analyses carried 
out by the Secretariat and the LDC Group based on the information provided. She encouraged 
Members to provide statistics and information with regard to their rules of origin to support such 
analyses. She was pleased to note that the analyses revealed that the LDCs' utilization rates of the 
European Union's Everything -but-Arms (EBA)  scheme were some of the highest among 
preference -granting Members.  She expressed apprecia tion that in existing agreements  of the 
European Union , text had  been identified that was considered  best practice in terms of  rules of 
origin . She looked forward to continuing  working together with  the LDC Group and other  Members  
on topics related to rules of origin .  
 
14. The r epresentative of the Russian Federation  commented on the gaps in notified  tariff and 
trade data mentioned by the Secretariat . He recalled that the Russian Federation's notification 
WT/COMTD/PTA1/N/1 of 20 June 2019 contained information on its new GSP scheme  in the context 
of the Eurasian Economic Union , which cover ed 104 developing countries a s well as the LDCs. He 
noted that the factual presentation of the PTA  had not yet been carried out in the Committee on 
Trade and Development , which could explain gaps in the  statistical  information that had been 
provided. He mentio ned that the ongoing preparations for the factual presentation  put his 
Government  in a good position with regard to closing these data gaps.  
 
15. The Chairperson  thanked the  Secretariat for the report and Members for their statements.  She 
said that  preferential rules of origin was an area where continuous progress had been made in the 
recent past. She was  encourag ed by the  progress being made in terms of enhanced transparency 
regarding notificat ions of rules of origin, as well as preferential tariff and import data. This ha d 
allowed for in -depth discussions on rules of origin requirements and preference utilization. She 
encourage d Members to remain engaged in these discussions in the CRO and cont inue their efforts 
in improving rules of origin conditions in line with the provisions of the Nairobi Decision to further 
facilitate exports from the LDCs. She suggested that the Sub -Committee take note of the report 
provided by the Secretariat, as well as  the statements made.  
 
16. It was so agreed . 
(II) Market Access for Products and Services of Export Interest to Least Developed Countries 
(WT/COMTD/LDC/W/67)  
17. The Chairperson  recalled that according to the Work Programme for the LDCs, the Secretariat 
had been p reparing a document every year to facilitate the annual review of market access for LDCs. 
The 2019  Secretariat Note was contained in document WT/COMTD/LDC/W/67. She invited the 
Secretariat's Economic Research and Statistics Division (ERSD) to present the m ain points of the 
Note.  
18. The representative of the Secretariat  (International Trade Statistics Section, ERSD ) said that 
between 2011 and 2018, LDC exports of goods and services  had increased at an average annual 
rate of 1.4%, less than the exports of other developing economies (+2.0% per year).  In 2018, LDC 
exports of goods and commercial services  had increased by 12%. Growth had been higher for 
services exports (16%) than for goods  exports (11%).   
 
19. He went on to note that the LDCs' share in world goods and services exports had  stood at 
0.94% in 2018, slightly higher than in 2017 ( 0.92% ). The LDCs' share in world goods exports had 
increased from 1.00% in 201 7 to 1.02% in 201 8, while their share in world commercial services 
exports had increased from 0.64% in 2017 to 0.69% in 2018.  
20. He said that the LDCs' trade deficit had reached USD 98.2 billion in 2018, more than twice the 
deficit in 2011 (USD 40.7 billion). While the trade balance f or goods had decreased  from a slight  
surplus in 201 1 to a US D 64.4 billion deficit in 201 8, the trade deficit for services had shrunk from 
USD 40.7 billion  to USD 33.8 billion.   
21. He continued by elaborating on developments in LDC merchandise trade. In 2018, LDC 
merchandise exports had increased by 13% to USD 193 billion while LDC merchandise imports had 
increased by 10% to USD 273 billion.  The LDCs' share  in world merchandise expor ts had stood at WT/COMTD/LDC/M/8 7 
 
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  1.02% in 2018, surpass ing the 1% threshold  for the first time since 2014 . The LDCs' share  in world 
merchandise imports  had remained at 1.4 1%. 
22. He said that the merchandise trade deficit of the LDCs had increased slightly from 
USD 77 billion in 201 7 to US D 80 billion in 201 8. The deficit in 2018 had been  mainly due to a n 
increase in the deficit of LDC exporters of manufactured goods (US D 45 billion in 2018 versus 
USD 35 billion in 2017). The largest increase in the trade deficit had been recorded by 
Cambodia  (+39%), followed by Bangladesh (+31%), Nepal (+31%), Haiti (+30%) and 
Madagascar  (+19%) . He also said that  due to rising  fuel prices,  LDC oil exporters  had further 
increase d their slig ht trade surplus from the previous year, after having experience d trade deficits 
in 2015 and 2016.   
23. He went on to say that energy prices had increased by 27.3% in 2018, continuing their 
increase after the decade -low in 2016. Prices of minerals and non -ferrous metals , and agricultural 
raw materials had grown  by 3.7% and  1.9% , respectively . Only import prices of food and beverages 
had slight ly decrease d in 2018  (-1.1%).  He mentioned that despite these price increases, t he price 
levels of all product groups re mained under the ir 2011  levels. 
24. Explaining that price fluctuations had a strong impact on the value of trade, he said that LDC 
merchandise exports in volume terms had increased by 0.3% in 2018, while import  volumes  had 
increased by 3%. LDCs' total merchand ise trade volume had increased by 1.7% in 2018 compared 
to a decline of 2.7% for other developing economies.  
25. He proceeded by noting  that the  top ten exporters had accounted for  more than  77% of LDC 
merchandise exports in 201 8, slightly less than in 201 1 (81%). The top three  exporters  - 
Angola  (21.8%), Bangladesh (20.4%)  and Myanmar (8.7%) - had accounted for more than half of 
LDC exports in 2018. While Angola 's share in LDC exports had been substantially higher in 2011, 
Bangladesh  (12.9%)  and Myanmar (4,9%) had accounted for a significantly lower share back then . 
26. He continued by saying that the share of primary products in merchandise exports of LDCs 
had increa sed from 55% in 2017 to 58% in 2018  but remained under the respective share in 2011 
(73%) . The decreasing share of fuels from 53% in 201 1 to 30% in 201 8 explain ed the lower 
importance of primary products in the LDCs' export basket. In contrast, the share o f clothing in LDC 
merchandise exports had more than doubled from 1 3% in 201 1 to 27% in 201 8. 
27. He said that LDC exports also continued to be concentrated in terms of destination markets , 
with the top ten markets account ing for 87.5% of LDC  merchandise exports in 201 8. The 
European  Union (28.5%) and China (27.8%) had each accounted for more than a quarter of LDC 
merchandise exports in 2018. Further main destination markets included the United States (9.3%), 
India (7.2%), Thailand (4.1%), Japa n (3.2%), Switzerland (2.7%), South Africa (1.7%), 
Republic  of Korea (1.6%) and Canada (1.5%).  
28. Based on an index of product concentration ranging from zero (equal distribution ) to one 
(maximum concentration), he noted that the product concentration of exports for the LDCs as a 
group  (index value of 0.225 ) as well as for each individual LDCs had been significantly higher than 
for world exports (0.063 ) in 2017 . The LDCs with the highest product concentration had been 
Angola  (0.93) , Kiribati  (0.90) , Guinea -Bissau  (0.88)  and Chad (0.77) , while Nepal  (0.15) , 
Djibouti  (0.16) , Uganda  (0.21) and  Senegal  (0.21)  had the lowest product concentration among the 
LDCs.  
29. He continued by elaborating on d evelopments in trade in commercial services. He said that 
LDC commercial services trade had reached US D 39.8 billion  in 2018 , the highest level on record, 
expanding by 16%, the most rapid growth since 2012 . Travel exports continued to be the leading 
servic es export sector, accounting for close to half (49.8%) of LDC services exports. In 2018, export  
growth had been  highest for transport services  (22%) , followed by other commercial services  (12%)  
and travel services  (11%) . He said that the fast growth in transport services exports reflected strong 
growth in Ethiopia (+25%), the LDCs' largest transport services exporter, but also in several other 
LDCs such as Afghanistan (+58%), Bhutan (+57%), Bangladesh (+49%) and Cambodia  (+22%).   
30. He went on to say that exports of LDCs in Africa had accounted for 52% of the LDCs' 
commercial services exports in 201 8, slightly less than in 2011 (55%). While also the share of LDC WT/COMTD/LDC/M/8 7 
 
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  islands in commercial services exports had decreased slightly from 7% in 2011 to 6% in 2018, LDCs 
in Asia had increased their respective share from  38% in 2011 to 42% in 2018.  
31. He said that the LDCs' s ervices exports  remained  concentrated as the top ten exporters had 
accounted for 73% of services exports in 2018, comp ared to 67% in 2011. In 2018, the top services 
exporter was Cambodia  (13.2%), followed by Myanmar (12.8%), Ethiopia (11.3%), Tanzania (9%), 
Bangladesh (8%), Nepal (5%), Uganda (4%), Sudan (4%), Madagascar (3%) and Senegal (3%). 
He pointed to the strong ser vices trade performance of Myanmar , from not being part of the top ten 
exporters in 2011 to be coming  the second -biggest  exporter in 2018.  
32. The representative of the Secretariat  (Market Access Intelligence Section, ERSD)  elaborated 
on market access conditions for the LDCs. He noted that duty -free and quota -free (DFQF) market 
access was part of the Sustainable Development Goals. He said that a few markets 
(Honk  Kong,  China; Macao, China; and Singapore) had no LDC scheme s, but the LDCs still benefitted 
from full or nearly -full duty -free market access on a most -favoured -nation (MFN) basis. In terms of 
LDC-specific preference schemes, he noted that Australia, New Zealand, Norway and Switzerland 
offered full duty -free access to  the LDCs. A number of other Members (Canada, Chile, China, 
European Union, Iceland, India, Japan, Montenegro, Republic of Korea) provided duty -free access 
on 90% or more of their respective tariff lines.  
33. He went on to comment on the number of national tar iff lines of preference -granting Members 
with imports originating in LDCs. The LDCs  had exported more than 6,000 products  to the 
European  Union  in 2017 , reflecting the highest product diversification for any destination market. 
He also explained that  the L DCs enjoyed meaningful preferential market access in the 
European  Union as more than  4,500  of those tariff lines were MFN dutiable.  In Thailand , which was 
the market with the second -highest number of imported products (close to 2,500) from LDCs , more 
than 1,000 products imported from LDCs benefitted from a preference margin as compared to MFN 
tariffs . 
34. He also presented estimates for trade -weighted average tariffs faced by the LDCs when 
exporting to preference -granting Members. Assuming full preference utili zation by the LDCs, the 
trade -weighted average tariff was 0.8% in China  and 0% in the European Union, the biggest 
destination markets of LDCs. He mentioned that the trade -weighted duty of 10.5% in the case of 
the United States could be explained by the fac t that only 3 9% of imports from LDCs were duty free 
under the United States' LDC -specific scheme.  
35. He went on to say that  data submitted by preference -granting Members under WTO's PTA 
Transparency Mechanism allowed the decomposition of imports from LDCs by duty category, 
providing insights into the utilization  of preferences. Noting that only 13 out of 24 
preference -granting Members provided the data required for such analysis , he invited the other 
Members to submit preferential import data if they were in a position to do so. He explained that 
imports originating from LDCs could be decomposed into four categories, i.e. MFN du tiable imports, 
MFN duty -free imports, imports that ma de use of an LDC  scheme  or another PTA, and imports that 
paid MFN duties despite being eligible for tariff preference.  
36. Providing a number of examples, h e illustrated  differences in the  utilization of L DC schemes  
across destination markets . In Australia, 89% of imports from LDCs entered duty free , i.e. 14% 
entered MFN duty free and 75% entered duty free under a PTA . In Switzerland, 87% of imports from 
LDCs entered duty free, i.e. 80% entered  MFN duty fre e and 7% entered duty free under the LDC 
scheme . In the case of the United States' GSP -LDC scheme, the relatively higher share of MFN 
dutiable imports from LDCs reflect ed that a significant amount of imports t ook place in products that 
were not covered by its GSP scheme for LDCs. In the case of the United States' African Growth and 
Opportunity Act ( AGOA ), more than 90% of imports from LDC beneficiaries enter ed the United States 
duty free.   
37. He said that based on the same data, it was also possible to assess preference utilization from 
the perspective of individual LDCs  and at the product level . The analysis contained in the Note 
revealed substantial differences across LDCs as well as product groups with regard to the type of 
duties applied to LDC expor ts when entering preference -granting markets.  He concluded by 
mentioning  that further investigation would  be required to better understand  how the preference 
utilization of LDCs could be further improved.  WT/COMTD/LDC/M/8 7 
 
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  38. The representative of Chad, on behalf of the LDC G roup,  expressed appreciation for the  Note 
and thanked the Secretariat for  its work. As in past meetings, he called on Members to work towards 
the full implementation of Decisions t aken in favour of LDCs on DFQF  market access, preferential 
rules of origin f or LDCs and the LDC services waiver. He emphasized  that the  effective 
operationalization  of the se Decisions would significantly enhance  the LDCs ' market share in world 
exports of goods and services.  
39. He went on to note the positive developments in the LDCs' exports of manufactures as well 
as services, in particular of transport and tourism services. However, he also noted the considerable 
heterogeneity in the trade performances of LDC exporters. He stressed that d espite the increase in 
exports in  2018, the LDCs ' share in global exports remain ed negligible  and exports continued to be 
concentrated in primary commodities. He underscored the need for the LDCs to further diversify 
their exports , which was an objective in line with  the 2030 Agenda for Sustainable Development.   
40. He highlighted the need for structural transformation and industrialization  in LDCs that 
encompass ed technological modernization and addressed environmental challenges. Adequate 
technical assistance  by develop ment partners and flexibilities under WTO rules  would allow the LDCs 
to move towards achieving these objectives . He concluded by asking the Secretariat to further 
elaborate on the reasons for the increase in the LDCs ' trade deficit , in particular with regard to the 
reduction in energy prices and the increase in imports.  
41. The representative of Cambodia  associated his delegation  with the statement made by Chad 
on behalf of the LDC Group.  He noted that the LDC s' share  in world exports remained below 1%. He 
said that despite  growth in merchandise exports , Cambodia continued to face a trade deficit.  He 
underlined the importance of preferential market access  to help Cambodia boost its economic growth 
and integrate into the multilateral tradi ng system. He stressed the need  to further facilitat e market 
access to help the LDCs fully utilize the  preferences available to them under DFQF schemes . Pointing 
to the low level of services exports  from LDCs  to international markets , he underlined  the importance 
of the  operationalization of the LDC services waiver and encouraged Members to keep working 
towards  fruitful outcome s in this area.  
42. He thanked Members for providing preferential treatment  to LDCs and called on them to fully 
implement the Ministerial Decisions taken in favour of LDCs on DFQF  market access , preferential 
rules of origin for LDCs and the LDC services waiver.  He also urged  preference -granting Members to 
refrain from impos ing measures which  would  limit opportunities for LDCs to utilize preferen ce 
scheme s, and to treat all products originating from LDCs on a non -discriminatory basis as provided 
under the Enabling Clause.  Referring to the increase in commercial services exports of LDCs in Asia , 
he concluded by asking the Secretariat to provide some explanation regarding the methodology and 
the source of import statistics in commercial services.  
43. The representative of Bangladesh  associate d his delegation with  the statemen ts made by 
Chad, on behalf of the LDCs , as well as by Cambodia.  Referring to the presentation, he asked why 
the share of  LDC islands in commercial services exports of LDCs had been decreasing between 2011 
and 201 8. He also expressed interest in learning more  about the sectors and destination markets 
responsible for the increase in services exports of  Myanmar , which had been  the top LDC services 
exporter  in 2018 , while it had not been among the top ten exporters  in 2011 . Regarding the analysis 
of preference ut ilization, h e commented on the inclusion of the United States' AGOA scheme, which 
had LDCs and other developing countries in Africa as beneficiaries, and the absence of the 
United  States' special trade preferences for Nepal. He concluded by expressing interest in better 
understand ing the reasons for the re latively high share s of imports from  Nepal, Vanuatu and Zambia , 
which did not utilize the preferences available to them  but rather entered paying MFN duties . 
44. The representative of  the European Union  expressed appreciation for the analysis carried out 
by the Secretariat . She welcom ed the positive trends  in LDC trade  but underlined the need to further  
increas e the LDCs'  participation in international trade . She also  noted that the European  Union was 
an important destination market for LDC exports. Referring to the  international community 's target  
of increasing the LDCs ' share in world exports to around 2%, s he highlighte d that  LDC exports  
accounted for more than 2% of European Union imports . She expressed interest  in the analysis o f 
preference utilization , which allow ed identifying  areas where attention was required . She 
emphasized that export diversification was an objec tive of the E uropean Union' s trade preference s 
and that it was important that the LDCs ma de further progress in this respect.  WT/COMTD/LDC/M/8 7 
 
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  45. The representative of Australia  thank ed the Secretariat for the comprehensive presentation. 
Referring to the statement by the representative of Chad, he also requested the Secretariat to 
provide further explanation of  the factors responsible for the increase in the LDCs' trade deficit for 
goods.  
46. The representative of China  commended the  Secretari at for the  Note as it provided useful 
insight s into market access for LDC exports. He noted that China remain ed a leading export 
destination for the LDCs accounting for 27.8% of LDC merchandise exports in 2018 . He also noted 
that China had increased its sh are of imports of agricultural products from LDCs  between 2011 and 
2018. He said that China continued to accord zero tariff treatment to LDCs on  97% of its tariff lines  
and remain ed committed to provide support to the LDCs to strengthen their integration into the 
global trading system.  
47. The representative of the United States  welcomed  the Note as provid ing important insight s 
into the state of market access for products and services from LDCs. She also noted the timeliness 
of the Dedicated Session of the  Council for Trade in Services  on 29 October 2019 , which  had included 
a discussion  on facilitating the participation of LDCs in services  trade .  
48. The representative of the Secretariat  (International Trade Statistics Section, ERSD) explained 
that two main factors could explain the increase in the  LDCs' trade deficit between 2011  and 2018. 
First, the fall in  prices of primary commodities, particularly  fuel, had lowered  the nominal value of 
LDCs' exports . Secondly, imports had been growing faster than exports  for most LDCs , in particular 
for exporters of manufacture s. In the case of  Bangladesh , the increase  in the trade deficit had been 
driven by strong import growth of food products and machinery. He further mentioned that a 
country -specific analysis would be required to better understand the particular reasons for each 
LDCs' trade deficit. He then said  that the increase in commercial se rvices exports of  Myanmar  
between 2011 and 2018 could be explained by  strong growth of  travel services, i.e. tourism , and 
transport services. He also explained  that between 2011 and 2018, the export  growth  of the LDC 
islands  had been positive , but at a low er rate than the  export growth of other LDCs , resulting in a  
slight decline  in their share in LDC services exports . 
49. The representative of the Secretariat  responsible for services statistics  said that 
balance -of-payments statistics from the International Monetary Fund (IMF) or national statistical 
offices had been  used in the Note to measure services trade. She explained that these statistics only 
covered three modes of supply, i.e. cross -border supply  (mode 1) , consumption abroad  (mode 2)  
and movement of natural persons  (mode 4). In the World Trade Report 2019 as well as the Dedicated 
Session of the Council for Trade and Services , the experimental dataset Trade in Services data by 
Mode of Supply (TISMOS)  had been used , which additionally cove red services supply through a 
commercial presence (mode 3) . Regarding  the destination of LDCs' services exports , she pointed to  
the lack of availability of bilateral services trade statistics for the LDCs , which  would be  useful in the 
context of the LDC services waiver. Regarding the deficit in commercial services  trade , she noted 
that the LDCs had a trade surplus with regard to travel services  and trade deficits with regard to 
transport services a s well as  other commercial servi ces. 
50. The representative of the Secretariat  (Market Access Intelligence Section, ERSD)  noted that  
developed Members provided  non-reciprocal preferences to LDCs under  LDC GSP schemes as well 
as a number of other PTAs. The United States' AGOA included  38 beneficiaries in Africa . Since many 
of these beneficiaries were LDCs, AGOA  had been  included in the Note. He also  said that the analysis  
of preference utilization  was based on data submitted under the PTA Transparency Mechanism, which 
allowed identifying for each preference -granting market the products imported from LDCs that  were 
prone to underutilization. He mentioned that estimates indicated that duties worth USD 310 million 
were paid on  products  import ed from LDCs  despite  being  eligible to a  preference.  He said that  the 
analysis of preference utilization could help  inform a discussion on why certain exports did not make 
use of the preferences available and help find a solution in this respect . 
51. The Chairperson  thank ed the Secretariat for the Note , and Members for their statements. She 
said that t he review of market access conditions for the LDCs was a core element  of the Work 
Programme of the Sub -Committee. She trusted that the Secretariat Note, and the discussion in the 
Sub-Committee , were making an important contribution to improve Members ' understanding of the 
factors that shape d LDC trade.   WT/COMTD/LDC/M/8 7 
 
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  52. She was  encourag ed that in 2018 , the LDCs had continued their positive trend from the 
previous year. Export growth ha d been faster for the LDCs than for the world, both in goods and 
particularly in services. However, s he cautioned that  the LDCs remain ed marginal participants in 
international trade. The LDC s' share in world exports was still below their share in 2011, the year 
when the Istanbul Programme of Action for the LDCs (IPoA) had been adopted . The LDCs remain ed 
far from the target of the IPoA to double their export shar e by 2020  and their trade deficit had more 
than doubled since 2011.  
53. She said that p referential market access represent ed a key effort by Members to help the 
LDCs enhance their productive capacity and diversify their exports. She noted that there was scope 
for the LDCs to enhance their utilization of preferences. She also said that the  Dedicated Session of 
the Services Counc il on 29 October 2019 had been a step forward in helping the LDCs make better 
use of the services trade opportunities that were available to them. She encourage d Members to 
continue their efforts to help the LDCs draw the benefits from preferential market access for their 
economic development . She  suggest ed that the Sub -Committee take note of the Secretariat Note 
contained in WT/COMTD/LDC/W/67, as well as the statements made.  
54. It was so agreed . 
C. ACCESSION OF LEAST D EVELOPED COUNTRIES  
(I) State of Play in the Accession Working Parties of Least Developed Countries: Oral Report by 
the Secretariat  
55. The Chairperson  said that a ccession was a core element of the Work Programme for the LDCs. 
She recalled that i t was in the Sub -Committee, where Members had produced a se t of guidelines to 
facilitate LDC accessions.  She noted that eight LDCs were at various stages of the accession process 
to join the WTO. She invited the Secretariat ( Accessions Division ) to brief the Sub -Committee on 
the state of play in the  LDCs'  Accession Working Parties.  
56. The representative of the Secretariat  (Accession s Division ) said that since the creation of the 
WTO in 1995, 36 Governments  had completed the accession  process  pursuant to Article XII of the 
Marrakesh Agreement establishing the WT O. These included nine LDCs, namely Nepal (acceded in 
2004), Cambodia (2004), Cabo Verde  (2008) , Samoa  (2012) , Vanuatu  (2012) , 
Lao People’s  Democratic Republic (2013) , Yemen  (2014), Liberia (2016) and Afghanistan  (2016) .2 
She noted that the average length of the nine LDC accessions had been twelve  and a half years, as 
compared to just above  ten years for all 36  WTO accessions.  
57. She sa id that acceded LDCs had made significantly higher market access commitments than 
original LDC Members. In goods,  Article XII  LDC Members had an average bound tariff rate of 22.4% 
as compared to 65.2% for original LDC Members. In services, Article  XII LDC Members had, on 
average , made commitments for 87 sub -sectors as compared to 20 sub -sectors for original LDC 
Members. She also said that based on their particular needs, Article  XII LDC Members had been 
granted transition periods to implement their obligations, particularly under the Agreement s related 
to trade -related intellectual property rights  (TRIPS) , sanitary and phytos anitary (SPS) measures and 
technical barriers to trade (TBT).  
58. She went on to say that LDCs accounted for eight out of 22 ongoing accessions , including six 
LDCs in Africa (Comoros, Ethiopia, Sao Tomé and Principe, Somalia, South Sudan and Sudan) and 
two LDCs in Asia (Bhutan and Timor -Leste).  At the outset of providing the state of play of the ongoing 
LDC accessions , she emphasized that even if there was  no Working Party activity, this did not imply 
that the acceding  Government was not undertaking any dome stic reform  in line with the accession 
process .  
59. She said that the accession of Comoros, whose Working Party had been established in 2007, 
had made good progress in the four Working Party meetings that had been held between 
December  2016 and March 2018.  The next step would be the circulation of all negotiating inputs by 
the Government  and the holding of the fifth Working Party meeting.  She noted that the Accession 
Working Party of Sudan  had been established in 1995, making it the longest -running LDC accession . 
 
2 Cabo Verde graduated from LDC status in 2007, Samoa in 2014.  WT/COMTD/LDC/M/8 7 
 
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  While there had been no Working Party activity between 2004 and 2016, two W orking Party  meetings 
had been held in 2017. The next Working Party meeting could be scheduled once the n ew 
Government would provide official communication on the reactivation of the accession process a s 
well as  updated  documentation.  In the case of Ethiopia, there had been no Working Party meeting 
since March 2012  and t he resumption of the process w ould requ ire the submission of negotiating 
inputs. She mentioned that the Government had indicated to the Secretariat its intention to submit  
all negotiating input s as one package.  
60. She continued by elaborating on three relatively new accessions that had started in  2016 
(Somalia  and Timor -Leste) and 2017 (South Sudan). Somalia  was still to circulate its Memorandum 
of Foreign Trade Regime  (MFTR) , which was the first document that any Government had to submit 
as part of the accession process. She mentioned that the Go vernment had indicated to the 
Secretariat its intention to submit the  MFTR in the near future . She noted that Timor -Leste 's MFTR 
had been circulated in June 2017.  The next step would be the submission of replies to Members ' 
questions as well as other negot iating inputs , including  market access offers and questionnaires 
regarding  WTO Agreements . She said that the Accession Working Party  of South Sudan  had held its  
first meeting in March 2019. The Government was currently working on the replies to Members' 
questions, which would serve as a basis for updating the MFTR and other documents.  
61. She went on to say  that the accession processes of Bhutan and Sao Tomé and Principe were 
dormant with no Worki ng Party activity. Both LDCs were scheduled to graduate from the LDC 
category in 2023 and 2024, respectively. She also noted that since Sao Tomé and Principe was  under 
Category III Administrative Measures , it could not benefit from technical assistance  of the 
Secretariat.  
62. She continued  by elaborat ing on outreach activities, with the Secretariat focusing on providing 
platforms for dialogue and experience sharing. The g7+ WTO Accession s Group of fragile and 
post-conflict acceding and recently acceded LDCs ha d been launched at the Eleventh WTO Ministerial 
Conference in 201 7 and comprised Afghanistan, Comoros, Liberia, Sao Tomé and Principe, Somalia, 
South Sudan, Timor -Leste and Yemen. Regular meetings were being held in Geneva, coordinated by 
Afghanistan. The Informal Group of Acceding Governments  (IGAG), which had all 22 acceding 
governments  as target audience , had already  held five meetings in 2019 , with the sixth meeting 
being schedule d for 14 November 2019 . The Regional Dialogue on WTO Accessions for the Greater 
Horn of Africa  had Comoros, Ethiopia, Somalia, South Sudan and Sudan  as the target audience . The 
first two Dialogues had been held in Nairobi in 2018 and Djibouti in 2019. The third Dialogue was 
envisaged to be held in Ethiopia in February 2020 under the  title "Deepening Economic Integration 
in Africa through WTO Membership and African Continental Free Trade Area (AfCFTA ) 
Implementation ".  
63. She also mentioned that the  Secretariat regularly organize d technical -assistance  and 
capacity -building activiti es on WTO accessions. She noted that a training course on goods schedules 
for WTO Accession would be held at the WTO from 18  to 22 November 2019 . The course would see 
the participation of 25 officials from 14 acceding governments, including five LDCs (Bhutan, 
Comoros, Ethiopia, South Sudan and Sudan ). 
64. The representative of Chad, on behalf of the LDC Group , thank ed the Secretariat for the  report. 
He said that the LDC Group attached high importance to the issue of LDC accessions as a number 
of LDCs were currently undergoing the accession process . He recalled that in order to address the 
LDCs' human, institutional and financial constraints, LDC accession guidelines had been  adopted in 
2002 and then further strengthened in 2012. These guidelines aimed at facilitating the accession 
negotiations for LDCs and asked Members to refrain from requesting concessions going beyond 
defined thresholds  with regard to market access for goods and services.  
65. He also underscored the importance of the provision of adequate technical assistance to 
accelerate the LDCs ' integration into the WTO. He welcome d the activities that had been developed 
by the Secretariat and a number of  Members , including  training workshops for government officials  
as well as  outre ach activities for members of Parliament, the private sector and other stakeholders. 
He thanked Members that ha d set out technical -assistance programmes for LDC accession s, namely 
China, the European Union, Japan, Oman, New  Zealand and the United  States. He also welcome d 
efforts made to simplify procedural aspects , including through  the streamlining of Working Party 
meetings, the use of videoconferencing to facilitate the participation of  capital -based  officials therein , 
as well as the support provided by the  Secretariat in organizing bilateral negotiations .  WT/COMTD/LDC/M/8 7 
 
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  66. He went on to say that  despite specific flexibilities available for acceding  LDCs, the y still face d 
major challenges owing to the concessions demanded  with regard to tariff bindings  for goo ds and 
access to markets for services. He called on Members to accept reasonable commitments in line with 
the development levels and capacities of LDCs . He emphasi zed that the integration of the LDCs into 
the multilateral trad ing system should  be facilitat ed and  take into account their specific ities and 
constraints. He concluded by  asking the Secretariat  about  the planning of  the next China Round 
Table, and  whether there was a possibility that an acceding LDC could complete its accession 
negotiations by the Twelfth WTO Ministerial Conference ( MC12 ) in June 2020.  
67. The representative of Yemen  associated his delegation with the statement provided by Chad , 
on behalf of the LDC Group. He said that as a recently acceded LDC his delegation followed LDC 
accessions closely , and that the majority of acceding LDCs w ere located in the Greater Horn of Africa. 
Noting that some LDC accession s were not active, he expre ssed interest in discussing  what the 
Secretariat  or Members could do , in addition to workshops, to assist th ese LDCs to activate their 
accession processes.  
68. The representative of the United States  thanked the Secretariat for the report . She said that 
her delegation  was an active participant in all Accession Working Part ies and a strong advocate of 
the WTO accession process . She highlighted that the accession process and commitments taken 
thereunder would make countries , and LDCs in particular , stronger and more resilient. Pro-trade 
domestic reforms that were required to implement WTO rules , as well as  trade liberalization  
support ed LDCs ' integration into world markets and sen t a powerful signal to investors. The 
implemen tation of  WTO provisions  provide d a predictable and stable framework that support ed 
national economic goals such as achieving sustainable development, promoting high -tech industry, 
attracting foreign investments, raising living standards and asserting national trade interests 
worldwide.  
69. The representative of the Secretariat  (Accessions Division)  confirmed that preparations were 
underway for the  Eighth China Round Table in Moscow, Russian Federation , on 4-5 December 2019 . 
Discussions on preparations for MC12 would be an important e lement of the event titled "Accessions 
and WTO Reform: on the Road to MC1 2". She noted that invitations had been sent to acceding LDCs 
as well as other acceding governments. She mentioned that the Trade Minister of Sudan had 
confirmed his participation, wh ich would be the  first engagement of a high-level official of the new 
Government  in a WTO event .  
70. Regarding the role of the Secretariat, she recalled that WTO  accession was a process of 
negotiations between Members and acceding Governments, and that the activities of the Secretariat 
were based on the support from the Membership . She said that dialogue and experience -sharing  
platforms , as well as  technical -assistance  and capacity -building activit ies, could serve as a catalyst 
for activities at the Working Party level.  She expressed appreciation for Yemen's engagement in the 
work on LDC accessions  as acceding LDCs would benefit from its experiences with the accession 
process.   
71.  She assure d Members that the Secretariat 's objective was to provide efficient and tailored 
technical assistance  and capacity building at each stage of the accession process. She gave the 
example of Geneva -based trainings on accessions , which the Secretariat had been organizing on 
issues such as goods  and services . She mentioned that the Secretariat was  exploring the idea of 
having a focused  accession training on agriculture in Autumn  2021. She said that the Secretariat 
would welcome feedback and suggestions with regard to further support that could be provided to 
acceding LDCs .  
72. She als o said that she was not in a position to indicate whether any LDC accession could be 
concluded by MC12, but that, based on documentation, the accession of Comoros was the most 
advanced. She concluded by  express ing appreciation for the United  States ' leadership and 
engagement in  accession process es. In this respect , she mentioned that acceding Governments had 
indicated to the Secretariat that the question and answer process  in Accession Working Party 
meeting s was very effective in building their capacity.  
73. The Chairperson  thanked the Secretariat for the report and Members for their statements. She 
said that the accession of LDCs to the WTO was central to the inclusiveness of the multilateral trading 
system. She noted that s ince the creation of the WTO, nine LDCs ha d successfully completed the WT/COMTD/LDC/M/8 7 
 
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  accession process. She said that  WTO accession was a catalyst for domestic reform and that WTO 
Membership represent ed a stepping stone on the development path of LDCs.  She was  encouraged 
by the progress made in the Accession Working Parties of some LDCs. She urged all Members to 
follow the LDC accession guidelines and intensify efforts to conclude the eight ongoing LDC accession 
negotiations as early as possible.  She suggest ed that the Sub -Committee take note of the report 
made by the Secretariat as well as the statements made.  
74. It was so agreed . 
D. OTHER BUSINESS  
75. Since there were no suggestions for any item  under Other Business , the Chairperson  said that, 
as Members  had agreed at the previous  meeting, the Secretariat had invited the United Nations 
Office of the High Representative for the Least Developed Countries, Landlocked Developing 
Countries and Small Island Developing States (UN -OHRLLS) to provide the Sub -Commi ttee with a 
briefing on the preparations for the Fifth UN Conference on the LDCs (LDC -V) in Doha in 2021. She 
said that UN-OHRLLS had welcomed the invitation but could not participate in the  meeting due to 
prior commitments. It would provide the Sub -Commit tee with a briefing at a future meeting.  She 
inform ed Members that the next meeting of the Sub -Committee was tentatively scheduled for the 
first quarter of 2020. The exact date w ould be communicated in due course.  
76. The meeting was adjourned . 
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